HRM Practices and Their Impact on Tesco's Profitability

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Title: Human Resource Management

Contents
Introduction......................................................................................................................................2
LO1..................................................................................................................................................3
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organization...............................................................................................................3
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection....4
M1 Assess how the functions of HRM can provide talent skills appropriate to fulfil business
objectives.........................................................................................................................................5
M2 Evaluate the strengths and weaknesses of different approaches to recruitment and selection. 6
D1 Critically evaluates the strengths and weaknesses of different approaches to recruitment and
selection, supported by specific examples.......................................................................................7
LO2..................................................................................................................................................8
P3 Explain the benefits of different HRM practices within an organization for both the employer
and the employee.............................................................................................................................8
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity...............................................................................................................................9
M3 Explore the different methods used in HRM practices, providing specific examples to
support evaluation within an organisational context.......................................................................9
D2 Critically evaluates HRM practices and application within an organisational context, using a
range of specific examples.............................................................................................................10
LO3................................................................................................................................................11

P5 Analyze the importance of employee relations in respect to influencing HRM decision
making...........................................................................................................................................11
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision-Making............................................................................................................................12
M4 Evaluate the key aspects of employee relations management and employment legislation that
affect HRM decision making in an organisational context...........................................................13
LO4................................................................................................................................................14
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples........................................................................................................................................14
M5 Provide a rationale for the application of a specific HRM practices in a work-related context.
.......................................................................................................................................................15
LO3 & LO4....................................................................................................................................15
D3 Critically evaluates employee relations and the application of HRM practices that inform and
influence decision making in an organisational context................................................................15
Conclusions....................................................................................................................................16
References......................................................................................................................................17

Introduction
Human resource is the field of management which helps any organization to plan, manage,
organize and control the various functions of the organization for the development, procurement
and maintenance of the business in an effective and efficient way. Human resource management
coordinates with the people of the organization to achieve its business goals and to satisfy its
employees by proper management of its employee’s working skills, business processes and
different technologies used for a particular purpose in the organization. Human resource
management includes the people with proper knowledge and a set pattern of practices that helps
in maintaining the relationship between the employees and the organization. Human resource
management helps the organizations to be in the competitive market. Human resource
management helps in hiring, recruiting, motivating, maintaining and satisfying the people of the
organization. Most important activities of the human resources management includes job
planning, job designing, job analysis, employee hiring, employee motivation, employee
remuneration and employee-organization relations etc.
In this study the company Tesco has been considered for the research purpose of human resource
management. It is a multinational merchandizer of groceries and retail items situated in United
Kingdom. The company was established in 1919 and deals in different products like furniture,
electronics, software, clothing, books, petrol and services like telecom, financial and internet etc.
Human resource management helps to keep a healthy and safe environment for the employees to
work. It helps to provide effective orientation, developmental training and effective performance
related feedback to the employees etc.

LO1
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organization.
Human resource management is the staff and people of any organization that works for the
development of the organization by making proper planning and corporate policies.
Main functions of human resource management include the following:
- Staff hiring and training
- Understanding the employee rules and ethics
- Management of the changes applied in the organization
- Achieving the business goals of the organization
- Make changes in the work process of the organization
- Maintaining the job satisfaction of the employees
- Maintaining the relationship between the employer and the employees
- Human resource recruitment, planning and selection
- Training and development
The work of the human resource can be classified into following two categories:
Organizational Level: At the organizational level human resource management needs to
maintain the work culture of the organization. Human resource management has to ensure the
compliance issues between the employees and the organization’s labor rules. Human
resource management works as the representative between the organization and the
government agencies related to the workforce (Brewster 2017).
Employee Level: The main motive of the human resource management at the employee level
is to manage the experience of the employees. Human resource management has to recruit
the best suited employees for the organization. Human resource management has to analyze
the performance of the employees and give them appraisals according to their performance.
Human resource management works as the representative of the employees in the
organization.

P2 Explain the strengths and weaknesses of different approaches to recruitment and
selection.
Recruitment is the process of establishing the relationship between the employer and the
candidates. The main aim of recruitment is to create jobs and make them available for the
people. In recruitment process the applicants have to submit the application form provided by
the recruiter. Human resource management department has to select the candidates on the
basis of the knowledge required for the development of the organization. In application
process the candidate needs to fill all the information asked by the employer including
personal information, qualification, previous experience, job details and responsibilities etc.
In today’s time of technology the recruitment can be done through internet also. Today most
of the companies recruit the candidates online. This online process of recruitment is less time
consuming. By using this online recruitment process candidates with the knowledge of the
field can directly apply for the job on the company website (Jeske & Shultz 2016).
An efficient recruitment process includes many activities like giving a proper job description,
conduction interview and selecting the most qualified and knowledgeable candidates. There
are two types of recruitment process - internal recruitment and external recruitment. Internal
recruitment process involves the process of selecting the candidates from the business on the
basis of their performance contribution for the company development. Internal recruitment is
the process of promoting the existing employees to increase the work efficiency instead of
recruiting new candidates. External recruitment can be conducted through the advertisement,
by conducting placement drives in different institutions and college campus and through
other placement agencies (Cho et al. 2016).
Selection is the process of selecting the suitable candidates for the organization from the
candidates applied for the position. Selection is also the process of rejecting the unsuitable
candidates. Successful selection process is the main key for the development of the
organization. Selection process is different for every organization. It includes interviewing
and testing of the candidates to analyze the skills of the candidates.

M1 Assess how the functions of HRM can provide talent skills appropriate to fulfil business
objectives.
Human resources management can provide effective talent and skills to fulfil business
objectives by following given functions:
- Human resource management helps the organization to achieve the strategic and
operational business goals.
- Human resource management helps the organization to maintain the relationship
between the employees and the employer.
- Human resource management helps the employees to maintain the level of the
performance in the organization and to enhance the performance to achieve the desired
productivity by providing them the facilities of performance feedback, orientation and
communication etc.
- Human resource management provides the employees an environment to utilize their
skills for the development of the organization.
- Human resource management helps the organization to maintain the safe and healthy
environment at the workplace for the employees.
- Human resource management helps the organization to establish an organizational
structure to deliver the high quality services and products.
- Human resource management helps the organization to recruit best suited employees for
the fulfilment of the company goals and objectives (Brink et al. 2016).
- Human resource management helps to keep the employees dedicated towards the
organization and motivated towards the work to maximize the company profit by using
different techniques which includes promotion, appraisal and increment etc.
M2 Evaluate the strengths and weaknesses of different approaches to recruitment and
selection.
Human resource department helps the organization to achieve the developmental goals of the
organization. Different approaches of recruitment and selection affects the organization in
many ways, some of them are listed below:

 Internal recruitment process in the organization provides the existing employees the
opportunity to change and upgrade the position without changing the organization.
 Internal recruitment helps the organization also to reduce the recruitment cost as
compare to the external recruitment without any extra efforts.
 External recruitment provides new opportunities to the organization with new skilled
employees.
 External recruitment process is more time consuming, costly and energy consuming
as compare to the internal recruitment process (Noe 2017).
 External recruitment provides the companies an opportunity to recruit best suited
people as per the needs of the organization.
 Internal recruitment helps the companies reduce the recruitment, interview
conduction and the training cost as the existing employees are already aware of the
work culture of the organization.
 In internal recruitment process the organization has the limited no, of applicants for
the position.
 Internal recruitment process helps to motivate the employees to work more
dedicatedly by providing them the opportunity of promotion.
 The main benefit of the internal recruitment and selection is the employees already
know about the positive and negative aspects of the organization and the organization
is also aware of the strengths and weaknesses of the employee.
 Human resources management helps the organization to finalize the selection process
by considering the vacant post and by judging the abilities and skills of the candidates
(Delery & Roumpi 2017).
Tesco is a grocery merchandizer in United Kingdom, it recruits and selects many people every
day for various posts. Applying procedure in external recruitment for the various posts of the
organization is simple. First step is to apply for the concerned post online or offline by providing
personal information and experience details, after that the human resource department will
shortlist the suited candidates and provides training to them. After training the department will
analyze the working skills of the candidates by assigning them the work related to their field. In
selection process the company will select the best suited candidates by analyzing their strengths

in the final process. For internal recruitment the organization will use the appraisal process for
selecting the candidate for the vacant post (Donate, 2016).
D1 Critically evaluates the strengths and weaknesses of different approaches to
recruitment and selection, supported by specific examples.
Recruitment and selection is the basic approach and work of the human resource management
department. Recruitment and selection process in any organization is very critical and sensitive
approach as this processing involves a regular, strict and proper monitoring of all the prospects
of the recruitment process. Recruitment and selection process involves various steps including
job application, job description, recruitment policies, strengths and weaknesses evaluation and
training etc (Holm & Haahr 2018).
The main motive of the recruitment and selection process is to select the right and best suited
person for the selected post. Recruitment process involves the analysis of the qualifications and
the strengths of the candidates required for the vacant position. To determine the proper
recruitment process every organization has to evaluate the job description for making the
selection more efficient. For the organizations requiring the person with a better performance
record internal recruitment is the best method of selection as it helps the organization to find a
person who is already known to the work culture, environment, rules and values of the
organization. It also helps the organization to motivate the people to perform in a better way to
get promoted (Fabricius 2013).
An effective selection process helps the organization to select the best candidate out of many
applicants applied for the post. This selection process provides the organization the facility to
verify that the candidate is qualified enough for the position and is able to perform the task
assigned to them in an effective way. There are various techniques which can be used in the
organization for the selection of the desired candidate which includes several interviews,
assessments, physical ability tests, cognitive tests and psychometric tests etc. The considered
organization Tesco prefers the optimal assessment techniques for the recruitment and selection of
the employees as per the need of the organization (Farndale et al. 2018).

LO2
P3 Explain the benefits of different HRM practices within an organization for both the
employer and the employee.
Human resource management includes various responsibilities for both the employees and the
employer. Human resource management protects labor rights to ensure the employee safety in
the organization. Human resource management helps to resolve the conflicts between the
employees and the organization management. Human resource management provides the
essential information to the employees regarding their roles and responsibilities, employee
benefits, training programs etc.
Human resource management in the organization has the responsibility to maintain various
reports including the employee performance, attendance record, personal information, training
record, terms and conditions etc. Human resource management helps the employees and
employer with the legal matters also. Human resource management maintains the positive work
environment in the organization which helps to keep the employees productive, motivated and
happy. Change is the key feature of the business development. Company needs to change the
policies time to time for the efficient development of the organization. Human resource
management needs to inform and train the employees for the changes occurred in the
organization.
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational
profit and productivity.
Human resource management helps the organization to increase the productivity and profit. In
the organization human resource management provides the innovative environment to the
employees. Human resource management sets the goals, purpose, direction, priorities and roles
of individual at the workplace. HRM practices helps to fulfill the individual as well as team goals
to achieve the organization productivity goals. HRM policies improve the organization
profitability and productivity with the help to collaborative ideas and tolls provided by the
individuals (Delery & Gupta 2016).

HRM practices keep the employees competent, highly involved and committed towards the work
which helps the organization to grow in every aspect. HRM practices help the organization to
create and implement new method of working to increase the productivity and profit of the
organization. Different human resource management policies help to increase the employee
loyalty, excitement, motivation and energy that help the employee to get recognition, feedback
challenge, praise, learning opportunities and exposure in the organization. Human resource
management knows how to utilize the knowledge and skills of the employees for the company
benefits effectively. Human resource management can change the company working policies to
maintain the productivity in the global market. Human resource management helps to identify
the skills of the employees and can update these skills as per the requirement of the market.
M3 Explore the different methods used in HRM practices, providing specific examples to
support evaluation within an organisational context.
Human resource practices include the strategy making as well as implementation of those
strategies. Human resource practices help the organization to keep the record of the employees
and in the payroll system processing. Being a multinational and multiproduct company Tesco
uses different method of human resource management practices. In the organization the human
resource management has to provide work safety and stability to the employees. This
employment security benefits the organization as it helps the organization to attract and retain
more people. Human resource management should hire the best people for the organization to
maintain and increase the productivity and profit of the organization (Guest 2017).
Human resource management should analyze the ability, trainability and commitment of the
employee towards the work. HRM should provide relevant training to the employees based on
the skill evaluation of the individual. It should need to make the information accessible to all the
people of the organization. Internal recruitment also helps the organization to keep the
employees loyal towards the organization. The organization should provide an open environment
to the employees in the organization so that the employees can share their ideas and views with
respect to the organizational profitability.

D2 Critically evaluates HRM practices and application within an organisational context,
using a range of specific examples.
Human resource management practice and application includes the processing of attracting,
maintaining and developing of the efficient work force to fulfill the objectives and goals of the
organization. HRM application includes the job designing, redesigning, employee empowerment
and participation in the context of the organization. Human resource includes two way
communications between the organization and the employees (Leroy et al. 2018).
The human resource management of Tesco needs to analyze the working environment of the
organization and in context to that the training should be provided to the employees to get the
benefits. The organization should provide different facilities to the employees to keep them
motivated, dedicated and involved in the work which benefits the organization in every aspect.